1
Contents
1. Overview of FRI
Overview of FRI ・・・・ 3
Management strategy ・・・・ 4
Portfolio map ・・・・ 5
Portfolio asset categories ・・・・ 6
2. Financial results and forecasts
Summary ・・・・ 9
Steady distribution growth ・・・・ 10
27th period results ・・・・ 11
28th period forecast ・・・・ 12
3. Management highlights
Management highlights—Large-scale shopping centers (regional SCs, outlet malls)
・・・・ 15
Management highlights—Community shopping centers (GMSs)
・・・・ 16
Management highlights—Medium-scale shopping centers (neighborhood SCs, supermarkets)
・・・・ 17
Management highlights—Urban retail facilities
・・・・ 18
Management highlights—Land interests and other properties
・・・・ 19
FRI and the retail market ・・・・ 20
Sound balance sheet ・・・・ 21
Internal growth—financial ・・・・ 22
Sustainability initiatives ・・・・ 23
4. Portfolio overviewPortfolio summary ・・・・ 27
FRI’s portfolio in graphs ・・・・ 29
Rent revision and lease maturity schedules ・・・・ 30
5. Appendix
◆All content in this document is provided solely forinformational purposes and is not intended to serve as aninducement or solicitation to trade in any product offeredby FRI. Investment decisions are made at the investors’discretion and risk. FRI disclaims any responsibility orliability for the consequences of investing in FRI.
◆Investment units issued by FRI are subject to pricefluctuations due to various factors, including: (1) volatilityin the J-REIT market, interest rates and the real estatemarket; (2) fluctuations in rental revenues fromproperties; and (3) the occurrence of unexpected lossesdue to natural disasters. Accordingly, investment in FRIentails the risk of incurring a loss. For more details,please also refer to a section titled “Investment Risk”presented in the Securities Registration Statement(Prospectus) and the Securities Report issued by FRI.
◆ Information provided in this document contains suchforward-looking statements as business forecasts, whichshould not be construed as commitment to or guaranteeof future performance.
◆The information provided in this document was originallypublished in Japanese language form and has beentranslated for reference purposes only. FRI guaranteesneither the completeness nor the accuracy of this Englishtranslation. Please be advised that all informationprovided herein may be subject to change without priornotice.
◆ Duplication or reproduction of any content presentedherein without the prior consent of FRI or its authorizedrepresentative is strictly prohibited.
Asset management company: Mitsui Fudosan Frontier REIT Management Inc.
(Financial Instruments Business Registration No. 395; issued by Director-General of the Kanto Finance Bureau based on the Financial Instruments and Exchange Law)
Disclaimer
1. Overview of FRI
3
Overview of FRI
Corporate profile
Name Frontier Real Estate Investment Corporation ("FRI")
TSE Listing August 9, 2004 Securities code: 8964
Sponsor Mitsui Fudosan Co., Ltd.Changed from Japan Tobacco Inc. as of March 2008
Investment target Retail facilities
Fiscal period ends June 30, December 31
Investment units issued 496,000
Asset management company Mitsui Fudosan Frontier REIT Management Inc.(Wholly owned subsidiary of Mitsui Fudosan Co., Ltd.)
Portfolio
Asset size (based on acquisition prices)
¥293.4 billion; 33 properties
Geographic distribution Urban areas: 52.0%; Other: 48.0%
Occupancy rate 100%
Total leasable floor space1 1,433,781 m2
Financial indicators
LTV*1 42.2%
Interest-bearing debt ratio*2
29.8%
Ratings JCR: AA Stable; R&I: AA- Stable; S&P: A+ Stable
Distributions
27th period (Dec. 2017) ¥10,146 per unit
28th period (June 2018) forecast
¥10,080 per unit
1. Loan-to-value ratio = (Borrowings and bonds + Leasehold and security deposits - Unrestricted cash and deposits ) / (Balance of total assets - Unrestricted cash and deposits); same shall apply to all succeeding occurrences of LTV2. Interest-bearing debt ratio = (Borrowings and bonds - Unrestricted cash and deposits) / (Balance of total assets -Unrestricted cash and deposits); same shall apply to all succeeding occurrences of interest-bearing debt ratio3. Calculated based on the annualized fixed rent (excluding common area maintenance charges) of lease contracts valid as of December 31, 2017. Variable rent is not taken into account. Unrestricted cash and deposits = Cash and cash equivalents at the end of the period - distributions for the period
AEON MALL NAGOYADOME-Mae
Mitsui Outlet Park IRUMA
Mitsui Shopping ParkLaLaport SHIN-MISATO
GINZA GLASSE
Key properties
Area3
Property type3
TokyoMetropolitan Area52.0%
Chubu14.1%
Kansai13.5%
Chugoku11.1%
Kyushu/Okinawa9.2%
Regional SCs39.5%
Outlet malls6.6%
Community SCs11.5%
Neighborhood SCs8.7%
Supermarkets6.4%
Urban retailfacilities
18.1%
Land interests and other properties9.2%
4
Management strategy
Turning fluctuating real estate revenue into steady distribution growth over the long term
External growth
Fully utilize the sponsor’s pipeline to continue acquiring excellent properties Selectively invest in non-sponsor properties utilizing the Asset Management Company’s unique network,
keeping a close eye on risk Carefully select properties for investment considering the certainty of cash flows and growth potential of the
surrounding retail zone Make acquisitions with an eye to maintaining the whole portfolio’s ratio of asset value to yield after
depreciation
Internal growth
Secure a foundation for stable earnings based on long-term fixed rent Adjust to changes in the environments surrounding properties, maintaining and enhancing competitiveness
through such measures as additional investment and tenant replacement Consider replacing properties that pose future uncertainties in order to further enhance portfolio quality
Financial strategy
Maintain sound financial standing through LTV control Execute capital procurement flexibly and strategically based on careful monitoring of the procurement
environment Leveling out repayment periods and amounts to increase financial stability
5
13
12
21
31
30
28
Costco Wholesale Warehouse Iruma (land interest)
Mitsui Outlet Park IRUMA
Mitsui Shopping Park LaLagarden KASUKABE
Costco Wholesale Warehouse Shin-Misato (land interest) Mitsui Shopping Park LaLaport SHIN-MISATO Mitsui Shopping Park LaLaport SHIN-MISATO Annex
19
1
4
33
22
27
15
16
11
20
7
25
14
26
8
10
29
2
5
24
6
18
Portfolio map
33 properties Asset size: ¥293.4 billion (as of February 15, 2018)
Ito-Yokado Higashi-Yamato AEON TOWN Tanashi-ShibakuboQueen’s Isetan Suginami-Momoi
Shimura Shopping Center
Summit Store TakinogawaMomiji-Bashi
Ikebukuro Square
Desigual Harajuku
GINZA GLASSE
AEON STYLE Shinagawa Seaside
Kamiikedai Tokyu Store
Super Viva Home Zama and Super Sanwa Zama Higashihara(land interest)Summit Store Yokohama Okano (land interest)
Kohnan Kawasaki- Odasakae Mall (land interest)
Don Quijote Fukuoka Tenjin
VIORO
Papillon Plaza
Frespo Tosu(land interest)
KOJIMA x BIC CAMERA Naha Store
17
23
3
9
32
Mitsui Shopping Park ALPARK (East Building) Home Center Kohnan Hiroshima Minami-Machi (land interest)
You Me Town Hiroshima
Shinsaibashi Square
AEON MALL Ibaraki
Belltown TambaguchiEki-Mae Store
QANAT Rakuhoku
AEON MALL NAGOYADOME-Mae Mitsui Shopping Park LaLaport IWATA
Kyushu/ Okinawa area Chugoku area
Kansai area
Chubu area
Tokyo metropolitan area
SaitamaTokyo
Kanagawa
Regional SC : A large-scale shopping center that houses multiple specialty stores
Outlet mall : A large-scale shopping center in which multiple outlet stores are concentrated
Community SC :A medium-scale shopping center where the main tenant typically stocks general merchandise and groceries (GMS)
Neighborhood SC : A medium- or small-scale shopping center where the main tenant is typically a supermarket
Supermarket : A retail outlet that sells mainly food products
Urban retail facilities : A store that faces onto a main street or a specialty store building in a prime urban location
Land interests and other properties : Land interests in retail facilities, etc.
Large-scale SCs
Community SCs
Medium-scale SCs
Urban retail facilities
Land interests and other properties
Ohmiya
Tachikawa
JR Yamanote-Line
Yokohama
6
Portfolio asset categories
9 propertiesAverage acquisition price: ¥4.6 bn
NOI yield: 5.5%NOI yield after depreciation: 4.1%
6 propertiesAverage acquisition price: ¥9.9 bn
NOI yield: 4.6%NOI yield after depreciation: 3.7%
8 propertiesAverage acquisition price: ¥3.7 bn
NOI yield: 5.3%NOI yield after depreciation: 5.3%
2 propertiesAverage acquisition price: ¥15.8 bn
NOI yield: 5.6%NOI yield after depreciation: 3.5%
Large-scale shopping centers (regional SCs, outlet malls)
Medium-scale shopping centers (neighborhood SCs, supermarkets)
Urban retail facilities
Land interests and other properties
Outlet malls
AEON MALL NAGOYADOME-Mae
You Me Town Hiroshima
AEON MALL Ibaraki Mitsui Shopping ParkLaLaport IWATA
Mitsui Shopping Park ALPARK (East Building)
Mitsui Shopping ParkLaLaport SHIN-MISATO
Mitsui Outlet Park IRUMA
Kohnan Kawasaki-Odasakae Mall (land interest)
Summit Store YokohamaOkano (land interest)
Costco Wholesale Warehouse Shin-Misato
(land interest)
Frespo Tosu (land interest)
Costco WholesaleWarehouse
Iruma (land interest)
Home Center Kohnan Hiroshima
Minami-Machi (land interest) 4
KOJIMA x BIC CAMERA Naha Store
Don Quijote Fukuoka Tenjin3VIOROIkebukuro Square GINZA GLASSE Shinsaibashi Square Desigual Harajuku
AEON STYLE Shinagawa Seaside 2
Ito-Yokado Higashi-Yamato
Papillon PlazaMitsui Shopping Park LaLagarden KASUKABE
QANAT Rakuhoku Shimura Shopping Center Queen’s IsetanSuginami-Momoi
Summit Store Takinogawa Momiji-Bashi
AEON TOWN Tanashi-Shibakubo
Belltown Tambaguchi Eki-Mae Store
Kamiikedai Tokyu StoreNeighborhood SCs
Community SCs
Urban retail facilities
Land interests and other properties
Community shopping centers(GMS)
1. NOI yield is calculated by dividing the sum of NOI on rent (excluding extraordinary factors) and profit from property leasing by acquisition prices. Figures used in this calculation are as of December 31, 2017.2. Renamed from AEON Shinagawa Seaside Shopping Center as of October 13, 2017.3. Previously, (provisional name) Don Quijote Tenjin; officially renamed to the current property name as of November 17, 2017 following the tenant change executed on August 24, 2017.4. Previously, (provisional name) Home Center Kohnan Hiroshima-Shi Minami-Machi (land interest); officially renamed to the current property name as of October 25, 2017.
Super Viva Home Zama andSuper Sanwa Zama
Higashihara (land interest)
Supermarkets
NOI yield: 5.9%NOI yield after depreciation: 4.1%
8 propertiesAverage acquisition price: ¥16.2 bn
Regional SCs
¥30.3 billion
¥59.5 billion
¥41.4 billion
¥31.7 billion
Total acquisition price: ¥130.3 billion
2. Financial results and forecasts
9
Summary
Conservative financial operations
3
3Initiatives to strengthen the portfolio
2
Steady distribution growth
1 Having accomplished a distribution per unit (DPU) of over ¥10,000 for the second consecutive period—a first for us—we now aim to extend this track record to the third consecutive period DPU
Maintained strong financial standing through conservative operations
LTV 27th period end: 42.2% (including leasehold and security deposits)
Interest-bearing debt ratio 27th period end: 29.8% (excluding leasehold and security deposits)
Reduced debt cost 27th period end: 0.62% (-0.07 pt from the 26th period end)
Acquired a new property from third parties Super Viva Home Zama and Super Sanwa Zama Higashihara (land interest) (July 2017)
Acquisition price: ¥4,320 millionAssumed NOI yield: 3.7%Floor space: 28,926.76 ㎡
New openings after tenant change Home Center Kohnan Hiroshima Minami-Machi (land interest) (October 2017) Don Quijote Fukuoka Tenjin (November 2017)
Renovations undertaken by master lessees AEON STYLE Shinagawa Seaside (October 2017) Ito-Yokado Higashi-Yamato (December 2017)
Home Center Kohnan Hiroshima
Minami-Machi
Don QuijoteFukuoka Tenjin
27th period 28th period¥10,146 ¥10,080(forecast)
26th period ¥10,022(up ¥124 from the 26th period; ¥66 above forecast)
10
8,648
8,846.5
8,922.5
8,980
9,205.5
9,274
9,368.5
9,294
9,097.5
9,239
9,299.5
9,991
9,191
9,173.5
9,405
10,211
9,707
9,360
9,695 9,6949,903
10,022 10,08010,146
8,000
8,500
9,000
9,500
10,000
1,9852,5112,610
3,0673,4703,5873,667
4,303
5,6586,1686,2336,364
7,4077,8018,023
8,4729,026
9,6769,96010,63310,390
9,85310,03710,051
10,02210,011
10,13510,111
1,0531,2411,3341,5931,9091,9531,9702,245
2,9502,9672,9972,9743,5323,5843,6083,876
4,2734,5504,6645,307
5,0074,6424,808
4,4674,911 4,970
5,0325,004
0
500
1,000
1,500
2,000
2,500
3,000
3,500
0
2,000
4,000
6,000
8,000
10,000
第1期
04/12月
第2期
05/6月
第3期
05/12月
第4期
06/6月
第5期
06/12月
第6期
07/6月
第7期
07/12月
第8期
08/6月
第9期
08/12月
第10期
09/6月
第11期
09/12月
第12期
10/6月
第13期
10/12月
第14期
11/6月
第15期
11/12月
第16期
12/6月
第17期
12/12月
第18期
13/6月
第19期
13/12月
第20期
14/6月
第21期
14/12月
第22期
15/6月
第23期
15/12月
第24期
16/6月
第25期
16/12月
第26期
17/6月
第27期
17/12月
第28期予想
18/6月
7,218.5
6,0455,622
4,771.5
営業収益(左軸) 当期純利益(左軸) 資産規模(右軸)
July 20081st public offering
March 2008Third-party allotment
July 20102nd public offering
July 20123rd public offering
March 20134th public offering
(billion yen)
Operating revenue (left axis)
Net income (left axis)
Asset size (right axis)
Steady distribution growth
Distribution per unit
DPU*(Forecast)(yen)
Operating revenue, net income and asset size(million yen) 350
300
250
200
150
100
50
0
* FRI implemented a two-for-one split of its investment units effective January 1, 2014. Distributions before the split have been divided by two.** Distribution per unit (DPU), operating revenue and net income forecasts for the 28th period are given as the figures announced in “Summary of Financial Results for the 27th Fiscal Period,”
published February 15, 2018.
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28thDec.‘04 Jun.’05 Dec.‘05 Jun.’06 Dec.’06 Jun.’07 Dec.’07 Jun.’08 Dec.‘08 Jun.’09 Dec.’09 Jun.’10 Dec.’10 Jun.’11 Dec.’11 Jun.’12 Dec.’12 Jun.‘13 Dec.’13 Jun. ’14 Dec.‘14 Jun.‘15 Dec.’15 Jun.’16 Dec.‘16 Jun.’17Dec. ’17 Jun.’18
(based on acquisition prices)
11
27th period results
26th period(January 1, 2017 to
June 30, 2017)
27th period(July 1, 2017 to
December 31, 2017)Change
Operating revenue 10,011 10,135 +124 +1.2%
Expenses related to rent business(excluding depreciation)
1,974 2,090 +116
NOI 8,037 8,044 +7
Depreciation 2,117 2,072 -44
Property leasing operating income
5,920 5,971 +51
Selling, general and administrative expenses*
619 640 +20
Operating income 5,300 5,331 +31 +0.6%
Non-operating income 6 1 -5
Non-operating expenses 334 299 -35
Ordinary income 4,971 5,033 +61 +1.2%
Net income 4,970 5,032 +61 +1.2%
Distribution per unit (yen) 10,022 10,146 +124 +1.2%
Investment units issued and outstanding (units) 496,000 496,000 —
LTV at period-end 41.6% 42.2% -0.6 pt
Interest-bearing debt ratio 28.8% 29.8% -1.1 pt
Number of properties 32 33 +1
(million yen) (million yen)
Note 1
Note 2
Note 2
Note 2
Major factors in changes
Note 1. Operating revenueOperation of 27th period acquisition (Super Viva Home Zama and Super Sanwa Zama Higashihara(land interest)) and full-period operation of Home Center Kohnan Hiroshima Minami-Machi (land interest)
+148
Income from utility expenses +25Decrease in rent due to tenant change at TSUTAYA BOOK STORE TENJIN
-18
Decrease due to contract termination at VIORO during the 27th period
-39
Note 2. Operating expensesUtility expenses +22Repairs and maintenance +98Depreciation -44Selling, general and administrative expenses +20
*Selling, general and administrative expenses = Asset custody fee + Administrative service fees + Directors’ compensations + Other operating expenses
12
28th period forecast
27th period results(July 1, 2017 to
December 31, 2017)
28th period forecast*
(January 1, 2018 toJune 30, 2018)
Change
Operating revenue 10,135 10,111 -23 -0.2%
Operating income 5,331 5,288 -42 -0.8%
Ordinary income 5,033 5,005 -27 -0.5%
Net income 5,032 5,004 -27 -0.6%
Distribution per unit (yen) 10,146 10,080 -66 -0.7%
(単位:百万円)
27th period results 28th period forecast*
Investment units issued and outstanding (units) 496,000 496,000
LTV at period-end 42.2% Approx. 42%Number of properties 33 33
(million yen) (million yen)Property tax, city planning tax, etc. 1,042 1,055
Repairs and maintenance 317 334
Depreciation 2,072 2,068
Non-operating expenses 299 284
Capital expenditures 171 158
*Forward-looking figures given here are as announced in “Summary of Financial Results for the 27th Fiscal Period,” published February 15, 2018.
Note 1
Note 2
Major factors in changes
Note 1. Operating revenueFull-period operation of 27th period acquisition (Super Viva Home Zama and Super Sanwa Zama Higashihara (land interest)) and tenant change
-3
Sales-linked rent +10Income from utility expenses -25
Note 2. Operating income(excluding difference in operating revenue)
Outsourcing expenses -21Utility expenses +23Property tax, city planning tax, etc. -13Repairs and maintenance -16Depreciation +4Selling, general and administrative expenses -4
(million yen) (million yen)
Preconditions for operating results forecasts
3. Management highlights
15
Over 7:27.7%
Under 7:72.3%
Excellent locations near train stations
Over 70%adjacent to
a station
Minutes on foot to nearest train station1
Percentage of total annual rent
46.1%
Portion under master leases
100%
Stable revenue base
Features of FRI’s large-scale shopping centers
1. Calculated based on the annualized fixed rent (excluding common area maintenance charges) of lease contracts valid as of December 31, 2017. Variable rent is not taken into account.
Among the largest outlet malls in the Tokyo metropolitan area, attracting customers from a broad area, with synergies with the neighboring Costco Wholesale Warehouse Iruma
Generates sales-linked rent every period
Mitsui Outlet Park IRUMA (outlet mall)
Management highlights—Large-scale shopping centers (regional SCs, outlet malls)
Mitsui Shopping ParkLaLaport IWATA
Mitsui Outlet Park IRUMA
Introduced sales-linked rent after large-scale renovations in 2015. →Continued to generate sales-linked rent in the 27th period
Ritsumeikan University Osaka-Ibaraki Campus open since spring 2015→Major increase in daytime population
JR line underpass to fully open in March 2018 (partially opened to pedestrians since November 2017)→Will expand the retail zone on the east side of JR line
Repairs of exterior walls planned (kickoff scheduled in the 28th period)
AEON MALL Ibaraki (regional SC)
Part of underpass already opened to pedestrians
AEON MALL Ibaraki
Underpass7 min. on footfrom Ibaraki
Sta.
所沢
東京新宿
渋谷
品川
立川国分寺
八王子
Tokoro-zawaI.C.
Kawa-goeI.C.
Kokubunji
Tachikawa Tokyo Shinjuku
Shibuya
Shinagawa
Tokyo
IrumaI.C.
OumeI.C.
HachiohjiI.C.Hachiohi
JCT.
OhizumiJCT.
BijogiJCT.
KawaguchiJCT.
Hachiohji
SaitamaSaitama
Tokoro-zawa
Kan-etsu Expressway
Ken-O Expressway
HchiohjiBypass
TohokuExpressw
ay
Chuo Expressway
Tomei Expressway
Around 500m from the Iruma IC
Grid-square analysis14,000
1,000
100
02050
300500
2,0003,0005,000
White indicates areas for which there is no
valid data
500m
1km3km
Sources: The Regional Economy and Society Analyzing System(RESAS)and Grid Square Statistics of Population Census undertaken by Statistics Japan, the Ministry of Internal Affairs and Communications
16
Ito-Yokado renovated the property’s food and supermarket sections (Dec. 2017)
Higashiyamato City ranked first among Tokyo municipalities in 2015 birthrate survey while securing third place in 2017 National Ranking of Towns Comfortable for Working Parents1
With neighboring retail facilities, forms the leading retail area in Higashiyamato City
Nojima store newly opened on the second floor in June 2017
In discussions regarding rent revisions (Nov. 2012 and Nov. 2015)
YAOKO
Ito-YokadoHigashi-Yamato
AEON RETAIL renovated the property and renamed it “AEON STYLE” (Oct. 2017)
Flagship central Tokyo AEON Group retail facility
Capable of capturing office workers’ weekday consumption thanks to its positioning as a key shopping center for Shinagawa Seaside Forest, a multipurpose complex with a number of facilities
Approximately 1,800 condominiums under construction within a 500 m radius
Agreed not to revise rents after periodic discussions in October 2017
Ito-Yokado Higashi-Yamato (community SC)AEON STYLE Shinagawa Seaside (community SC)
27th period renovation 27th period renovation
AEON STYLE
Shinagawa
Condominiums (now on sale)
Radius Population* 2011–2016 growth
1 km 40,000 +8.6%
3 km 272,000 +9.1%
5 km 806,000 +9.9%
Furthergrowth expected
Radius Population2 2011–2016 growth
1 km 32,000 +7.5%
3 km 222,000 +2.8%
5 km 558,000 +1.4%
*Calculated using Basic Resident Register data as of April 1, 2016
1. Based on municipality surveys undertaken by Nikkei DUAL and Nihon Keizai Shimbun2. Calculated using Basic Resident Register data as of April 1, 2016
Management highlights—Community shopping centers (GMSs)
17
Opened in 1993 to take advantage of a favorable location boasting direct access to main roads
Contract to reach maturity in April 2019
Now looking into future internal growth opportunities
Papillon Plaza (neighborhood SC)
In August 2016, the master lessee (H2O Asset Management) acquired an adjacent lot
In discussions regarding rent revisions (January 2015 and January 2018)
Now looking into future internal growth opportunities
QANAT Rakuhoku (neighborhood SC)
Yoshizuka Sta.
Hakata Sta.
3 min. toHakata station
Management highlights—Medium-scale shopping centers (neighborhood SCs, supermarkets)
Radius Population*2011–2016
growth
1 km 33,000 +15.3%
3 km 214,000 +14.7%
5 km 522,000 +11.9%
Radius Population*2011–2016
growth
1 km 36,000 +4.8%
3 km 184,000 +2.7%
5 km 414,000 +2.8%
*Calculated using Basic Resident Register data as of April 1, 2016 *Calculated using Basic Resident Register data as of April 1, 2016
Papillon Plaza(Approx. 44,000m2)
Adjacent lot(Approx. 6,300㎡)
Takano River
QANAT Rakuhoku
(approx. 13,000 m2 )
18
Opened in November 2017
Achieved tenant change from TSUTAYA to Don Quijote with no downtime in August 2017
The lengthening of the Nanakuma subway line (to be completed in 2022) will improve access to Hakata Station
Don Quijote Fukuoka Tenjin
Tenant Don Quijote Co., Ltd.
Contract type
Fixed-term building lease
Contract period Aug. 2017 – Mar. 2038
Leased floor space
4,532.38 ㎡
27th period new opening
Management highlights—Urban retail facilities
GINZA GLASSE roadside land price
0
5,000
10,000
15,000
20,000
25,000
1980 1985 1990 1995 2000 2005 2010 2015
Features of FRI’s urban retail facilities
FRI owns stores with street level access and buildings that house specialty stores in prime urban locations with high liquidityFRI maintains a good balance of acquisitions from the sponsor (sponsor-
developed properties) and from third partiesGrowing inbound marketing demand is positively affecting store sales
Percentage of total annual rent accounted for by urban retail facilities
13.1%
18.1%
Source: National Tax Agency
At 17th period-end
At 27th period-end
(year)
(thousand yen/m2)
VIORO
●Brooks Brothers
Don Quijote
●Sony Store
H&M●
●DIESELMuji●
Apple Store●
●ZARA
Nishitetsu Fukuoka (Tenjin) Sta.
Ikebukuro TenjinHarajukuGinzaAcquired from the sponsor Acquired from third parties
Shinsaibashi
19
Acquired using the Asset ManagementCompany’s unique network in July 2017
Easy access via Yamato-Atsugi Bypass (National Route 246)
Offers synergy with neighboring Costco Wholesale Zama Warehouse
Super Viva Home Zama and Super Sanwa Zama Higashihara (land interest) Home Center Kohnan Hiroshima Minami-Machi (land interest)
Opened in October 2017
A profit contributor throughout the 27th period and beyond
Expected to generate synergies withneighboring You Me Town Hiroshima
Location 2 Minami-machi, Minami-ku, Hiroshima City, Hiroshima
Period-end book value ¥1,754 million
Contract periodAug. 2016–Jul. 2037 (fixed-term business-use land lease contract)
Leased floor space 6,055.14 m2
27th period acquisition 27th period new opening
Location 1 Higashihara, Zama City, Kanagawa Acquisition price ¥4,320 millionAcquisition date July 31, 2017
Contract periodJul. 2014–Jul. 2044 (fixed-term business-use land lease contract)
Leased floor space 28,926.76 m2
Management highlights—Land interests and other properties
Radius Population*2007–2012
growth
1 km 25,000 +2.8%
3 km 247,000 +2.1%
5 km 573,000 +2.3%
*Calculated using Basic Resident Registers data as of April 1, 2016
20
(trillion yen)
5.8%4.8%
39.6%
10.8%
17.9%
6.0%
3.1%12.0%
Year-on-year comparison of monthly sales at FRI properties
Source: SC sales statistics report, Japan Council of Shopping Centers* Calculated based on sales at properties for which comparisons with the previous year are possible
FRI and the retail market
Source: Consumption Trend Survey for Foreigners Visiting Japan, Japan Tourism Agency
(trillion yen)
BtoC E-commerce market size and e-commerce adoption rate (product sales)
Source: Ministry of Economy, Trade and Industry FY2016 E-Commerce Market Survey
5.99 6.80 7.24 8.00
3.85%4.37%
4.75%5.43%
0%
1%
2%
3%
4%
5%
6%
7%
0
3
6
9
2013 2014 2015 2016
EC市場規模(左目盛) EC化率(右目盛)
Annual retail product sales by region
Annual retail
product sales by region
Distribution of FRI
properties*
* Calculated based on the annualized fixed rent (excluding common area maintenance charges) of lease contracts valid as of December 31, 2017. Variable rent is not taken into account.
■Hokkaido ■Tohoku ■Tokyo metropolitan area ■Chubu ■Kansai■Chugoku ■Shikoku ■Kyushu/Okinawa
52.0%
14.1%
13.5%
11.1%
9.2%
Source: Data on 2016 retail sales volumes by regional Bureau of Economy, Trade and Industry, Ministry of Economy, Trade and Industry
Consumption by overseas tourists visiting Japan
E-commerce adoption rate(right axis)
E-commerce market size(left axis)
Government target:
¥8 trillion
-30%
-20%
-10%
0%
10%
20%
30%
2017
/01
2017
/02
2017
/03
2017
/04
2017
/05
2017
/06
2017
/07
2017
/08
2017
/09
2017
/10
2017
/11
2017
/12
SC FRI
1.1 1.4 2.0 3.5 3.7 4.4 0
1
2
3
4
5
6
2012 2013 2014 2015 2016 2017 2020
21
LTV ratio 41.6% 42.2%
Interest-bearing debt ratio 28.8% 29.8%
Long-term debt ratio 84.6% 86.3%
26th(June 30, 2017)
27th(December 31, 2017)
Balance of borrowings and bonds ¥86,400 million ¥85,400 million
Balance of leasehold and security deposits* ¥33,951 million ¥33,105 million
Total balance of liabilities ¥120,351 million ¥118,505 million
Sound balance sheet
Key financial indicators
Unrealized gain based on appraisal value NAV
NAV growth +16.2% over five years
Cash and deposits, etc. ¥ 11.4 billion
Book value of assets under management¥261.3 billion
Net assets¥151.8 billion
Borrowings and bonds¥85.4 billion
Leasehold and security deposits¥33.1 billion
Unrealized gain ¥57.6 billion
¥209.4 billion(NAV)NAV per unit ¥422,315
Other liabilities ¥2.4 billion
¥ 118.5 billion
Total assets: ¥272.7 billion (as of December 31, 2017)
*For an overview of leasehold and security deposits, please see p. 46
¥318.9 billion(Appraisal value)
¥57.6 billion (billion yen)
18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th
250
200
150
100
50
0
(billion yen)
70
60
50
40
30
20
10
0
Unrealized gain based on appraisal value and NAV1s
t2n
d3r
d4t
h5t
h6t
h7t
h8t
h9t
h10
th11
th12
th13
th14
th15
th16
th17
th18
th19
th20
th21
st22
nd23
rd24
th25
th26
th27
th
22
400385 376 381 369 358 339
303 307
27230,000
40,000
50,000
60,000
70,000
80,000
90,000
第18期 第19期 第20期 第21期 第22期 第23期 第24期 第25期 第26期 第27期200
250
300
350
400
450
500借入金等残高(左軸) 支払利息額(右軸)
0
50
100
150
第28
期第
29期
第30
期第
31期
第32
期第
33期
第34
期第
35期
第36
期第
37期
第38
期第
39期
第40
期第
41期
第42
期第
43期
第44
期第
45期
第46
期第
47期
第48
期第
49期
第50
期第
51期
第54
期第
55期
(billion yen)
長期借入金 保証金
3.58 3.70 3.64 3.703.93 4.04
4.32
4.84 4.83 4.63
1.08% 1.09% 1.07% 1.05%0.98%
0.92%0.84%
0.72% 0.69%0.62%
-0.20%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
2
3
4
5
6
7
8
第18期 第19期 第20期 第21期 第22期 第23期 第24期 第25期 第26期 第27期
Distribution of maturity dates
(%)
(years)
各期返済分平均利率 各期借入分平均利率
0.91
0.51%
1.06
0.36%
1.07
0.27%
1.98
0.43%
1.41
0.35%
1.23
0.21
0.98 1.04 0.78
0.20
0.80
1.40
2.00
3.9 4.5 5.07.0
6.0 5.6 6.1 7.0 6.3
8.8
5.9
9.8 11.68.0
5.2
0
4
8
12
第22期 第23期 第24期 第25期 第26期 第27期 第28期 第29期 第30期
(as of February 15, 2018)
第27期の長期借入分
Commitment line(million yen) (million yen)
(years) (%)
Impact on DPU:+¥257
投資法人債
Refinancing to reduce debt cost (excluding short-term loans)Average remaining loan/bond period and debt cost (at each period end)
Balance of borrowings and bonds and interest paid
Internal growth—financial
Average period ofrepaymentsin each period
Average periodof new loans/bondsin each period
22nd 23rd 24th 25th 26th 27th 28th 29th 30th
15
10
5
0
Investment corporation bondsLong-termborrowingsLong-term borrowings in 27th Long-term borrowings in 28th
28th
29th
30th
31st
32nd
33rd
34th
35th
36th
37th
38th
39th
40th
41st
42nd
43rd
44th
45th
46th
47th
48th
49th
50th
18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th
Average including leasehold and security
deposits:5.83
Average including leasehold and security
deposits:0.47%
■Balance of borrowingsand bonds (left axis) ■Interest paid
(right axis)
Debt cost (right axis)Years remaining (left axis)
18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th
55th
Average interest rate of newloans/bonds in each period
Average interest rate of repayments in each period
Security deposits
23
Sustainability initiatives
Acquiring external recognitionsGRESB Real Estate Assessment SMBC Environmental Assessment
Received “Green Star” and “5-Star” ratings under the GRESB program
SMBC Environmental Assessment Financing FrameworkSponsored by Sumitomo Mitsui Banking Corporation (SMBC), this assessmentprogram rates corporations’ efforts to ensure eco-friendly operations based onunique criteria established by The Japan Research Institute, Limited. SMBC alsosets financing conditions, including those for private placement bonds, taking theresults of these assessments into account.
Rated “AA” in recognition of unique initiatives that no other J-REIT has undertaken
Rating (AAA is the highest)
AA: Implementing excellent environmental consideration
Certified properties
DBJ Green Building Certification
GRESB (Global Real Estate Sustainability Benchmark)GRESB is an assessment of the sustainability of real estate companies and operators. Saidassessment is closely watched, as institutional investors use the GRESB benchmark assessment whenthey select investment targets.
■ East Asia / Retail / Listed
2nd (of 6 entities)■Global
156th (of 823 entities)
27th period acquisition 27th period acquisition
VIORO AEON MALL Ibaraki AEON MALL NAGOYADOME-Mae
Mitsui Shopping Park LaLaport IWATA
★★★★★ ★★★★ ★★★★★★★GINZA GLASSE Ikebukuro Square
★★★ ★★★Mitsui Shopping Park
LaLaport SHIN-MISATO
★★★★★Mitsui OutletPark IRUMA
★★★★ ★★★Mitsui Shopping Park
LaLagarden KASUKABE
24
Sustainability initiatives
FacilityResults
Participants Clothing collected
Additional donations
Mitsui Outlet Park IRUMA 97 437 kg ¥2,800
LaLagarden KASUKABE 263 1,307 kg ¥5,287
LaLaport IWATA 234 1,214 kg ¥9,781
LaLaport SHIN-MISATO 295 1,256 kg ¥6,251
ALPARK 534 2,105 kg ¥27,682
&EARTH Clothing Support ProjectTwice a year since 2008, the Mitsui Fudosan Group organizes and executes the project, invitingthe public to donate unneeded clothing at retail facilities. The clothing is then distributed topeople in need through the NPO Japan Relief Clothing Center.
Results of events at FRI properties (Oct.–Nov. 2017)
1,423participants
6,319 ㎏of clothing collected
¥51,801in additional donations
ESG-related initiatives
Participated in 18th &EARTH Clothing Support Project
An event held at Mitsui Shopping Park LaLagarden KASUKABE
Examples of initiatives undertaken by the Asset Management Company
Conducted disaster drills
A disaster drill
Practiced such immediate responses as confirming the status of property damage and safety of employees following a disaster, assuming the occurrence of a major earthquake directly beneath the Tokyo Metropolitan Area.
Reducing environmental burden
* Recycling rate =Recycled volume/garbage emissions × 100
3R (Reduce, Reuse and Recycle) initiatives
Volume of garbage recycled at five properties (Apr. 2016–Mar. 2017)
Garbage emissions
Recycled volume
Recycling rate*
522t/year
497t/year
95.2%
LaLaport SHIN-MISATO
LaLagarden KASUKABEMitsui Outlet Park IRUMA
GINZA GLASSE LaLaport IWATA
4. Portfolio overview
27
№ Property name Acquisition date Seller1 Acquisition
price Book value Appraisal value
Total leasablefloor space2
Occupan-cy rate2
Age3
(years) PML4
1 AEON STYLE Shinagawa Seaside Aug. 2004 JT 20,100 15,248 19,100 77,547 ㎡ 100% 15.3 14%2 AEON MALL Ibaraki5 Aug. 2004 JT 18,100 14,306 23,800 151,092 ㎡ 100% 17.1 13%
3 Papillon Plaza Aug. 2004 JT 4,810 4,504 5,440 17,095 ㎡ 100% 24.1 1%
4 Kamiikedai Tokyu Store Aug. 2004 JT 1,490 1,240 1,860 6,640 ㎡ 100% 15.8 11%
5 Belltown Tambaguchi Eki-Mae Store Aug. 2005 JT 2,130 1,872 2,870 11,176 ㎡ 100% 12.4 9%6 AEON MALL NAGOYADOME-Mae Mar. 2006 JT 24,800 20,820 25,200 154,766 ㎡ 100% 11.8 13%7 Summit Store Takinogawa Momiji-Bashi Sep. 2006 JT 3,100 2,848 3,700 6,455 ㎡ 100% 11.3 12%
8 Home Center Kohnan Hiroshima Minami-Machi(land interest) 6 Apr. 2007 JT 1,940 1,754 2,540 6,055 ㎡ 100% - -
9 Frespo Tosu (land interest) Nov. 2007 JT 3,178 3,256 3,110 79,447 ㎡ 100% - -10 You Me Town Hiroshima Feb. 2008 JT 23,200 20,000 21,200 122,169 ㎡ 100% 9.9 10%11 Queen’s Isetan Suginami-Momoi Jul. 2008 MF, etc. 3,560 3,366 4,110 5,212 ㎡ 100% 13.1 12%12 Mitsui Outlet Park IRUMA Jul. 2008 MF, etc. 19,900 16,163 22,600 98,714 ㎡ 100% 9.8 14%13 Costco Wholesale Warehouse Iruma (land interest) Jul. 2008 MF, etc. 2,600 2,626 2,750 24,019 ㎡ 100% - -14 Desigual Harajuku7 Oct. 2008 Non-sponsor 3,100 2,902 3,400 1,149 ㎡ 100% 19.2 14%15 Ito-Yokado Higashi-Yamato Jan. 2009 Non-sponsor 11,600 9,837 11,100 53,374 ㎡ 100% 14.1 12%16 AEON TOWN Tanashi-Shibakubo Feb. 2009 MF, etc. 3,100 2,831 3,300 8,785 ㎡ 100% 12.8 11%17 Don Quijote Fukuoka Tenjin Dec. 2009 Non-sponsor 3,700 3,337 4,290 4,532 ㎡ 100% 10.5 2%18 Mitsui Shopping Park LaLaport IWATA Jul. 2010 MF, etc. 15,200 11,533 15,300 136,136 ㎡ 100% 8.6 16%19 GINZA GLASSE Jul. 2010 MF, etc. 13,600 12,901 15,100 5,174 ㎡ 100% 9.8 11%20 Shimura Shopping Center Jan. 2011 Non-sponsor 4,430 4,209 5,800 17,126 ㎡ 100% 17.1 14%21 Mitsui Shopping Park LaLagarden KASUKABE Feb. 2011 MF, etc. 10,000 8,716 11,200 63,415 ㎡ 100% 10.2 13%22 Summit Store Yokohama Okano (land interest) Feb. 2012 Non-sponsor 5,700 5,945 6,800 14,394 ㎡ 100% - -23 VIORO Feb. 2012 Non-sponsor 10,100 9,675 11,900 5,834 ㎡ 100% 11.3 1%24 QANAT Rakuhoku Jul. 2012 MF, etc. 8,800 7,953 8,640 48,303 ㎡ 100% 17.1 9%25 Ikebukuro Square Feb. 2013 MF, etc. 20,400 19,361 24,700 8,863 ㎡ 100% 5.1 14%
(million yen)
Portfolio summary
28
№ Property name Acquisition date Seller1 Acquisition
priceBook value
Appraisal value
Total leasablefloor space*2
Occupan-cy rate2
Age3
(years) PML4
26 Mitsui Shopping Park ALPARK (East Building) Feb. 2013 MF, etc. 5,400 4,912 5,500 65,603 ㎡ 100% 27.7 12%27 Kohnan Kawasaki-Odasakae Mall (land interest) Jan. 2014 Non-sponsor 7,000 7,069 8,950 23,393 ㎡ 100% - -
28 Mitsui Shopping Park LaLaport SHIN-MISATO Annex Mar. 2014 MF, etc. 3,930 3,717 3,980 6,714 ㎡ 100% 5.7 12%
29 Shinsaibashi Square Mar. 2015 MF, etc. 8,620 8,658 9,500 1,750 ㎡ 100% 3.3 7%
30 Mitsui Shopping Park LaLaport SHIN-MISATO8 Apr. 2015Aug. 2016 MF, etc. 19,840 19,507 20,200 142,315 ㎡ 100% 8.4 11%
31 Costco Wholesale Warehouse Shin-Misato (land interest) Apr. 2015 MF, etc. 3,810 3,854 3,950 30,292 ㎡ 100% - -
32 KOJIMA x BIC CAMERA Naha Store Jan. 2016 Non-sponsor 1,850 1,922 2,450 7,301 ㎡ 100% 11.8 6%
33 Super Viva Home Zama and Super Sanwa Zama Higashihara (land interest) Jul. 2017 Non-sponsor 4,320 4,385 4,560 28,926 ㎡ 100% - -
Total (33 properties, as of December 31, 2017) 293,408 261,243 318,900 1,433,781 ㎡ 100% 11.6 7.65%
(million yen)
1. “MF, etc.” represents Mitsui Fudosan and its consolidated subsidiaries as well as special purpose companies in which Mitsui Fudosan has invested.2. For properties for which pass-through type master lease contracts are concluded, the figures are as at December 31, 2017, calculated on an end tenant basis. 3. With the exclusion of land interests, the determination of property age is calculated using the weighted average method based on acquisition price. 4. PML represents the probable maximum loss in earthquake risk analysis. The values stated for AEON MALL Ibaraki and Mitsui Outlet Park IRUMA are for the store buildings. The figure for Desigual
Harajuku includes the portion of the building that was demolished as of October 29, 2012. The figure for Shinsaibashi Square is for the north tower. The value listed under Total represents the PML value at December 31, 2017 of the entire portfolio (properties from No. 1 to No. 33) as a whole, not the average value of the properties in the portfolio.
5. The acquisition price is as at the time of acquisition and includes the price of a part of land sold to Ibaraki City on October 12, 2010 (Space: 118.86 m2; book value: ¥15 million; sales price: ¥19 million) 6. The acquisition price is as at the time of acquisition and includes the price of the building on the property at the time (¥208 million). Said building was demolished as announced on December 2, 2016.
The value given for book value at end of 27th period is that after the building’s demolition.7. The acquisition price is as at the time of acquisition and includes a portion of the site sold on July 30, 2012 (cost of sales: ¥259 million).8. FRI acquired a 16% co-ownership stake on April 1, 2015, and an additional 50% co-ownership stake on August 10, 2016, but the total leasable floor space presented here is that for the entire property.
The acquisition price presented is the total after the additional acquisition.
Portfolio summary
29
Average contract term: 19.0 years
FRI’s portfolio in graphs
1. All figures are calculated based on the annualized fixed rent (excluding common area maintenance charges) of lease contracts valid as of December 31, 2017. Variable rent is not taken into account. The ratio of fixed rent and sales-linked rent is that of the 27th fiscal period.
2. Based on acquisition price, excluding properties operated as land interests. 3. Excluding tenants under pass-through master lease contracts. 4. Balance of time remaining until the next rent revision date or contract maturity date, whichever is earlier.
Sales-linked rent1.2%
Fixed rent98.8%
Over 10 years23.8%
5 to 10 years37.3%
3 to 5 years16.8%
3 years or less22.1%
Over 10 years53.1%5 to 10 years
22.7%
5 years or less24.2%
Over 10 years87.8%
5 to 10 years8.7%
5 years or less3.4%
AEON Group25.0%
Mitsui Fudosan3
25.3%
Izumi7.7%
Summit4.2%
Round One4.0%
Other33.7%Regional SCs
39.5%
Outlet Malls6.6%
Community SCs11.5%
Neighborhood SCs8.7%
Supermarkets6.4%
Urban retailfacilities
18.1%
Land interests and other properties9.2%
Buildingage2
5 years or less3.3%
5 to 10years43.8%
Over 20 years3.9%
10 to 20years49.1%
Property type Tenants
Contract term
Remainingcontract
term
Period remaininguntil rentrevision4
Ratio of fixed rent and sales-linked rent
Average remaining contract term: 10.9 years
Average building age: 11.6 years
Contract type
Master leasecontracts
68.4%
Pass-throughmaster lease contracts 10.4%
Single-tenantContracts12.1%
Multi-tenant contracts9.1%
30
1. For multi-tenant properties and properties for which pass-through type master lease contracts are concluded, the end tenant that leases the largest leased floor space is shown if they lease over 30% of the total.2. ML: Master lease contract; P: Pass-through type master lease contract (in which the amount of rent that the master lessee pays FRI is the same as the amount of rent that end tenants are contracted to pay the master lessee); S: Contract with a single tenant; M: Contract with multiple tenants;
F: Fixed-term lease; T: Traditional lease3. Figures are calculated based on the annualized fixed rent (excluding common area maintenance charges) of lease contracts valid as of December 31, 2017.4. FRI has a direct lease contract with Royal Home Center and pass-through type master lease contracts with the other end tenants.5. The main tenant and the rent revision and lease maturity schedules are not disclosed as the status of contracts with end tenants varies significantly.
Property name Main tenant1 Contract type2
Sales-linked rent
Percent-age of total
annual rent3
2017 2018 2019 2020 2021Lease
maturity 26th 27th 28th 29th 30th 31st 32nd 33rd 34th 35th
1 AEON STYLE Shinagawa Seaside AEON Retail ML T 7.6% Oct-22
2 AEON MALL Ibaraki AEON Retail ML F ○ 7.8% Apr-35
3 Papillon Plaza Royal Home Center M/P*4 F/T 2.1% Apr-19
4 Kamiikedai Tokyu Store Tokyu Store ML F 0.5% Mar-22
5 Belltown Tambaguchi Eki-Mae Store Matsumoto ML F 0.9% Aug-25
6 AEON MALL NAGOYADOME-Mae AEON Retail ML F 8.0% Mar-26
7 Summit Store Takinogawa Momiji-Bashi Summit S F 1.0% Sep-26
8 Home Center Kohnan Hiroshima Minami-Machi(land interest) Kohnan Shoji S F Undis-
closed Jul-37
9 Frespo Tosu (land interest) Daiwa Lease S F 1.2% Nov-27
10 You Me Town Hiroshima Izumi ML F 7.7% Feb-28
11 Queen’s Isetan Suginami-Momoi Isetan Mitsukoshi Food Service ML F ○ 1.2% Dec-24
12 Mitsui Outlet Park IRUMA Mitsui Fudosan ML F ○ 6.6% Jul-38
13 Costco Wholesale Warehouse Iruma(land interest) Costco S F 0.8% Apr-38
14 Desigual Harajuku INTS S F ○ 0.7% Sep-22
15 Ito-Yokado Higashi-Yamato Ito-Yokado ML T 3.9% Nov-23
16 AEON TOWN Tanashi-Shibakubo AEON Town ML T ○ 1.2% Mar-25
17 Don Quijote Fukuoka Tenjin Don Quijote S F Undis-closed Mar-38
18 Mitsui Shopping Park LaLaport IWATA Mitsui Fudosan ML F ○ 6.2% Jun-30
19 GINZA GLASSE5 — P F/T 3.6% -
20 Shimura Shopping Center Summit ML T 1.6% Nov-20
21 Mitsui Shopping Park LaLagarden KASUKABE Mitsui Fudosan ML T ○ 3.8% Feb-31
22 Summit Store Yokohama Okano (land interest) Summit S F 1.6% Nov-31
23 VIORO5 — P F ○ 4.0% -
24 QANAT Rakuhoku H2O Asset Management ML T ○ 2.8% Nov-20
25 Ikebukuro Square Round One M F 6.6% Dec-32
26 Mitsui Shopping Park ALPARK (East Building) Mitsui Fudosan ML T ○ 2.7% Feb-33
27 Kohnan Kawasaki-Odasakae Mall (land interest) Kohnan Shoji S F 2.1% Jan-36
28 Mitsui Shopping Park LaLaport SHIN-MISATO Annex FOREVER21 P F/T ○ 1.2% Apr-22
29 Shinsaibashi Square Burberry Japan M F Undis-closed Undisclosed
30 Mitsui Shopping Park LaLaport SHIN-MISATO Mitsui Fudosan ML T ○ 6.0% Mar-35
31 Costco Wholesale Warehouse Shin-Misato(land interest) Costco S F Undis-
closed Undisclosed
32 KOJIMA x BIC CAMERA Naha Store Kojima S F Undis-closed May-27
33 Super Viva Home Zama and Super Sanwa Zama Higashihara (land interest)
Sumitomo Mitsui Finance and Leasing S F Undis-
closed Jul-44
Rent revision and lease maturity schedules
Revision
Maturity
Revision Revision
Revision
Revision Maturity
MaturityRevision
New Contract
Recontracting
5. Appendix
33
26th period(January 1, 2017 to
June 30, 2017)
27th period(July 1, 2017 to December
31, 2017)Change Major factors in changes
Amount % of total Amount % of total Amount % changeOperating revenue 10,011 100.0% 10,135 100.0% 124 1.2%
Rent revenue–real estate1 9,947 10,110 163Rent revenue–other2 63 24 -38
Operating expenses 4,711 47.1% 4,804 47.4% 92 2.0%Expenses related to rent business 4,091 4,163 72
Property management expenses 495 488 -6Property and other taxes 1,043 1,042 -0Casualty insurance 13 13 0Repairs and maintenance 218 317 98Depreciation 2,117 2,072 -44Other expenses3 203 228 25
Selling, general and administrative expenses 619 640 20
Asset management fee 498 504 6Asset custody fee 13 13 0Administrative service fees 21 21 0Directors' compensations 6 6 -Other 79 94 14
Operating income 5,300 52.9% 5,331 52.6% 31 0.6%Non-operating income 6 1 -5Non-operating expenses 334 299 -35
Interest expenses 321 285 -36Other 12 13 0
Ordinary income 4,971 49.7% 5,033 49.7% 61 1.2%Income before income taxes 4,971 49.7% 5,033 49.7% 61 1.2%Income taxes (after net adjustment) 0 0 0Net income 4,970 49.7% 5,032 49.7% 61 1.2%Unappropriated retained earnings 4,971 49.7% 5,032 49.7% 61 1.2%
Statement of income
(million yen)
1Operation of 27th period acquisition (Super Viva Home Zama and Super Sanwa Zama Higashihara(land interest)) and full-period operation of Home Center Kohnan Hiroshima Minami-Machi (land interest)
+148
Income from utility expenses +25Decrease in rent due to tenant change at TSUTAYA BOOK STORE TENJIN
-18
2Decrease due to contract termination at VIORO during the 27th period
-39
3Utility expenses +22
34
Balance sheet (assets)
26th Period(as of June 30, 2017)
27th Period(as of Dec. 31, 2017) Change Major factors in changes
Amount % of total Amount % of total Amount % change
Current assets 15,998 5.8% 11,483 4.2% -4,514 -28.2%
Cash and deposits1 11,800 7,623 -4,177
Cash and deposits in trust1 4,031 3,683 -348
Other 165 176 10Non-current assets(including deferred assets) 258,828 94.2% 261,308 95.8% 2,480 1.0%
Property, plant and equipment2 258,770 261,255 2,484
Buildings 37,995 36,987 -1,007
Structures 393 358 -35
Tools, furniture and fixtures 32 30 -1
Land 72,924 72,924 -
Buildings in trust 33,405 32,595 -810
Structures in trust 383 359 -24Machinery and equipment in trust 222 200 -21Tools, furniture and fixtures in trust 41 41 0
Land in trust3 113,359 117,744 4,385Construction in progress in trust 12 12 -
Intangible assets 1 1 0
Investments and other assets4 56 51 -4
Total assets 274,826 100.0% 272,792 100.0% -2,034 -0.7%
(million yen)
1.Cash and deposits matching depreciation +2,072Property acquisition during 27th period (Super Viva Home Zama and Super Sanwa Zama Higashihara (land interest))
-4,385
Partial return of security deposits -763Decrease in leasehold deposits due to property acquisition and tenant change during 27th period
-82
Consumption taxes payable -244Loan repayment -1,00027th period capital expenditures -171
2.27th period capital expenditures +171Depreciation -2,072
3.Property acquisition during 27th period (Super Viva Home Zama and Super Sanwa Zama Higashihara (land interest))
+4,385
4.Amortization of insurance payments -3
35
26th Period(as of June 30, 2017)
27th Period(as of Dec. 31, 2017) Change Major factors in changes
Amount % of total Amount % of total Amount % change
Current liabilities 21,208 7.7% 18,662 6.8% -2,546 -12.0%
Short-term loans payable1 18,500 16,200 -2,300
Operating accounts payable 870 895 25
Accrued expenses 257 244 -12
Advances received 1,098 1,073 -25
Other2 482 248 -233
Non-current liabilities 101,867 37.1% 102,317 37.5% 450 0.4%
Long-term loans payable3 64,900 66,200 1,300
Investment corporation bonds 3,000 3,000 -Tenant leasehold and security deposits4 17,672 17,491 -180Tenant leasehold and security deposits in trust4 16,278 15,613 -665
Other 15 12 2
Total liabilities 123,075 44.8% 120,980 44.3% -2,095 -1.7%
Unitholders’ capital 146,590 53.3% 146,590 53.7% -
Total surplus 5,159 1.9% 5,221 1.9% 61
Reserve for reduction entry 188 188 -Unappropriated retained earnings 4,971 5,032 61
Total net assets5 151,750 55.2% 151,811 55.7% 61 0.0%
Total liabilities and net assets 274,826 100.0% 272,792 100.0% -2,034 -0.7%
Balance sheet (liabilities and net assets)
(million yen)
1.Loan repayment -1,000Extension of short-term loans -3,500Current portion of long-term loans payable +2,200
2.Consumption taxes payable -244
3.Extension of short-term loans +3,500Current portion of long-term loans payable -2,200
4.Partial return of security deposits -763Decrease in leasehold deposits due to propertyacquisition and tenant change during 27thperiod
-82
5.Net assets per unit (yen):
At the end of 26th period 305,948At the end of 27th period 306,072
36
Item26th period
(January 1, 2017 toJune 30, 2017)
27th period(July 1, 2017 to
December 31, 2017)Cash flows from operating activities
Income before income taxes 4,971 5,033
Depreciation and amortization 2,117 2,072
Other 980 -317
Net cash provided by (used in) operating activities 8,069 6,788
Cash flows from investing activities
Purchase of property, plant and equipment -39 -8
Purchase of property, plant and equipment in trust -103 -4,497
Repayments of tenant leasehold and security deposits -278 -255
Proceeds from tenant leasehold and security deposits 1 82
Repayments of tenant leasehold and security deposits in trust -43 -728
Proceeds from tenant leasehold and security deposits in trust 239 63
Payments of restricted bank deposits in trust -216 -50
Proceeds from reversal of restricted bank deposits in trust 14 216
Net cash provided by (used in) investment activities -424 -5,179
Cash flows from financing activities
Proceeds from short-term loans payable 25,000 31,500
Repayment of short-term loans payable -27,000 -30,000
Proceeds from long-term loans payable 5,000 3,500
Repayment of long-term loans payable -3,000 -6,000
Redemption of investment corporation bonds -0 -
Payments for investment corporation bond issuance costs -4,911 -4,968
Net cash provided by (used in) financing activities -4,911 -5,968
Net increase (decrease) in cash and cash equivalents 2,732 -4,359
Cash and cash equivalents at beginning of period 12,462 15,194
Cash and cash equivalents at end of period 15,194 10,834
(million yen)
Statement of cash flows
37
6.2% 6.3% 6.2% 6.3% 6.2%
5.6% 5.7% 5.6% 5.6% 5.5%
5.3% 5.2% 5.2% 5.2% 5.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
第23期
(15/12月)
第24期
(16/6月)
第25期
(16/12月)
第26期
(17/6月)
第27期
(17/12月)
帳簿価額ベース 取得価格ベース 鑑定価額ベース
4.5% 4.6% 4.5% 4.6% 4.6%
4.1% 4.2% 4.1% 4.1% 4.1%
3.8% 3.8% 3.8% 3.8% 3.7%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
第23期
(15/12月)
第24期
(16/6月)
第25期
(16/12月)
第26期
(17/6月)
第27期
(17/12月)
帳簿価額ベース 取得価格ベース 鑑定価額ベース
41.2% 39.1%42.3% 41.6% 42.2%
27.2% 25.5%29.6% 28.8% 29.8%
0%
10%
20%
30%
40%
50%
第23期
(15/12月)
第24期
(16/6月)
第25期
(16/12月)
第26期
(17/6月)
第27期
(17/12月)
LTV有利子負債比率
393,714 404,873 409,596 415,987 422,315
306,307 305,620 305,829 305,948 306,072
200,000
250,000
300,000
350,000
400,000
450,000
第23期
(15/12月)
第24期
(16/6月)
第25期
(16/12月)
第26期
(17/6月)
第27期
(17/12月)
一口当たりNAV一口当たりBPS
(yen)
NOI yield* Yield after depreciation*
LTV / Interest-bearing debt ratio NAV per unit / BPS per unit
Key indicators
23rd(Dec. ’15)
24th(June ‘16)
25th(Dec. ’16)
26th(June. ’17)
27th(Dec. ’17)
23rd(Dec. ’15)
24th(June ‘16)
25th(Dec. ’16)
26th(June. ’17)
27th(Dec. ’17)
23rd(Dec. ’15)
24th(June ‘16)
25th(Dec. ’16)
26th(June. ’17)
27th(Dec. ’17)
23rd(Dec. ’15)
24th(June ‘16)
25th(Dec. ’16)
26th(June. ’17)
27th(Dec. ’17)
Book value basis
Appraisal value basis
Acquisition price basis
Book value basis
Appraisal value basis
Acquisition price basis
NAV per unitBPS per unit
LTVInterest-bearing debt ratio
* The above figures are calculated excluding extraordinary factors.
38
1. NOI = Property leasing operating income + Depreciation (same shall apply to all succeeding occurrences of NOI)2. Only NOI is disclosed, as FRI has not obtained the permission of the lessee to disclose other information.
Real estate rent revenue Expenses related to rent business Property leasing
operating income
NOI1NOI yield
TotalRent
revenue –real estate
Rent revenue –
otherTotal
Property and other
taxes
Property management
expenses
Casualty insurance
Repairs and maintenance Depreciation Other
expenses(to acquisition
price)2 (to book value)
AEON STYLE Shinagawa Seaside
26th 742 737 4 359 87 46 1 4 214 4 383 598 6.0% 7.7%27th 742 737 4 405 87 38 1 57 214 4 336 551 5.5% 7.2%
AEON MALL Ibaraki26th 774 768 5 296 96 16 0 17 162 1 478 640 7.1% 8.9%27th 776 771 5 267 96 16 0 5 146 1 509 656 7.2% 9.2%
Papillon Plaza26th 222 222 0 90 32 37 0 0 18 1 132 150 6.3% 6.7%27th 222 222 0 90 32 37 0 1 17 1 132 149 6.2% 6.6%
Kamiikedai Tokyu Store26th 53 53 - 17 5 1 0 - 10 0 35 46 6.2% 7.4%27th 53 53 - 17 5 1 0 - 10 0 35 46 6.2% 7.5%
Belltown TambaguchiEki-Mae Store
26th 84 84 - 21 9 1 0 0 10 - 63 73 6.9% 7.9%27th 84 84 - 21 9 1 0 - 10 - 63 74 7.0% 7.9%
AEON MALLNAGOYADOME-Mae
26th 773 773 - 254 91 15 0 0 146 - 519 665 5.4% 6.3%27th 773 773 - 258 91 15 1 3 146 - 515 661 5.3% 6.4%
Summit StoreTakinogawa Momiji-Bashi
26th 99 99 - 20 6 1 0 0 12 - 78 90 5.8% 6.3%27th 99 99 - 20 6 1 0 - 12 - 78 90 5.9% 6.4%
Home Center KohnanHiroshima Minami-Machi
(land interest)
26th Notdisclosed2 -5 - -
27th Notdisclosed2 66 6.8% 7.6%
Frespo Tosu (land interest)
26th 118 118 0 16 16 - - - - 0 101 101 6.4% 6.2%27th 118 118 0 16 16 - - - - 0 101 101 6.4% 6.2%
You Me Town Hiroshima26th 745 745 0 247 89 14 0 - 142 - 497 640 5.5% 6.4%27th 745 745 0 247 89 14 0 - 142 - 497 640 5.5% 6.4%
Queen’s Isetan Suginami-Momoi
26th 112 112 - 23 8 2 0 0 11 0 89 100 5.7% 6.0%27th 112 112 - 52 8 3 0 29 11 0 59 70 4.0% 4.2%
Mitsui Outlet Park IRUMA26th 714 714 0 319 47 16 1 42 211 0 395 606 6.1% 7.4%27th 700 700 0 305 47 15 1 28 211 0 395 607 6.1% 7.5%
(million yen)
Leasing income and expenses by property
39
Leasing income and expenses by property
Real estate rent revenue Expenses related to rent business Property leasing
operating income
NOINOI yield
TotalRent
revenue –real estate
Rent revenue –
otherTotal
Property and other
taxes
Property management
expenses
Casualty insurance
Repairs and maintenance Depreciation Other
expenses(to acquisition
price) (to book value)
Costco Wholesale Warehouse Iruma
(land interest)
26th 78 78 0 4 4 - - - - - 73 73 5.7% 5.6%27th 78 78 0 4 4 - - - - - 73 73 5.7% 5.6%
Desigual Harajuku26th 66 66 - 12 7 1 0 - 3 0 53 57 3.7% 3.9%27th 66 66 - 12 7 1 0 - 3 0 53 57 3.7% 3.9%
Ito-Yokado Higashi-Yamato
26th 380 380 - 168 41 8 0 2 115 0 211 327 5.6% 6.6%27th 380 380 - 166 41 8 0 1 115 0 213 328 5.7% 6.7%
AEON TOWNTanashi-Shibakubo
26th 114 114 - 31 11 2 0 - 17 0 83 100 6.5% 7.1%27th 114 114 - 35 11 3 0 3 17 0 79 97 6.3% 6.9%
Don Quijote FukuokaTenjin
26th 147 147 - 54 8 4 0 2 32 5 92 125 6.8% 7.5%
27th Notdisclosed* 91 5.0% 5.5%
Mitsui Shopping Park LaLaport IWATA
26th 601 601 0 369 71 13 0 18 265 0 231 496 6.5% 8.4%27th 600 600 0 370 71 13 0 19 265 0 229 495 6.5% 8.6%
GINZA GLASSE26th 415 415 - 219 42 65 0 8 55 47 196 252 3.7% 3.9%27th 420 420 - 238 42 67 0 16 56 55 182 238 3.5% 3.7%
Shimura Shopping Center26th 158 158 0 46 15 3 0 0 27 0 111 138 6.3% 6.6%27th 158 158 0 46 15 3 0 - 27 0 111 139 6.3% 6.6%
Mitsui Shopping Park LaLagarden KASUKABE
26th 370 370 - 177 37 8 0 16 114 0 192 307 6.1% 7.0%27th 370 370 - 207 37 9 0 45 114 0 163 277 5.6% 6.4%
Summit Store Yokohama Okano
(land interest)
26th 154 147 7 10 10 - - - - - 144 144 5.1% 4.9%27th 154 147 7 10 10 - - - - - 144 144 5.1% 4.9%
VIORO26th 540 495 44 315 39 122 0 14 52 86 224 276 5.5% 5.7%27th 532 526 5 327 39 116 0 20 52 97 204 257 5.1% 5.3%
QANAT Rakuhoku26th 276 276 - 206 38 8 0 66 93 0 69 163 3.7% 4.1%27th 276 276 - 157 38 7 0 46 65 0 119 184 4.2% 4.6%
(million yen)
* Only NOI is disclosed, as FRI has not obtained the permission of the lessee to disclose other information.
40
Leasing income and expenses by property
Real estate rent revenue Expenses related to rent business Property leasing
operating income
NOINOI yield
TotalRent
revenue –real estate
Rent revenue –
otherTotal
Property and other
taxes
Property management
expenses
Casualty insurance
Repairs and maintenance Depreciation Other
expenses(to acquisition
price)1 (to book value)
Ikebukuro Square26th 690 690 0 261 40 61 0 0 120 38 429 550 5.4% 5.6%27th 697 697 0 269 39 63 0 0 120 44 427 548 5.4% 5.7%
Mitsui Shopping Park ALPARK (East Building)
26th 264 264 - 152 56 5 2 2 85 - 111 197 7.3% 7.9%27th 264 264 - 152 56 5 2 1 85 - 111 197 7.3% 8.0%
Kohnan Kawasaki-Odasakae Mall (land interest)
26th 208 208 0 20 20 0 - - - 0 187 187 5.4% 5.3%27th 208 208 0 20 20 0 - - - 0 187 187 5.4% 5.3%
Mitsui Shopping Park LaLaport SHIN-MISATO
Annex
26th 140 140 0 72 7 13 0 2 34 15 67 101 5.2% 5.4%27th 145 145 0 74 7 14 0 - 34 18 70 104 5.3% 5.6%
Shinsaibashi Square26th Not
disclosed2 174 4.0% 4.0%
27th Notdisclosed2 174 4.0% 4.0%
Mitsui Shopping Park LaLaport SHIN-MISATO
26th 586 586 - 231 60 12 1 14 142 0 354 496 5.0% 5.1%27th 586 586 - 232 60 12 1 15 142 0 353 496 5.0% 5.1%
Costco Wholesale Warehouse Shin-Misato
(land interest)
26th Notdisclosed2 86 4.5% 4.5%
27th Notdisclosed2 86 4.5% 4.5%
KOJIMA x BIC CAMERA Naha Store
26th Notdisclosed2 68 7.4% 7.1%
27th Notdisclosed2 70 7.6% 7.3%
Super Viva Home Zama and Super Sanwa Zama
Higashihara (land interest)
26th - - - - - - - - - - - - - -
27th Notdisclosed2 76 - -
Total26th 10,011 9,947 63 4,091 1,043 495 13 218 2,117 203 5,920 8,037 5.6% 6.3%27th 10,135 10,110 24 4,163 1,042 488 13 317 2,072 228 5,972 8,044 5.5% 6.2%
(million yen)
1. NOI yield is not shown for the property acquired in the 27th period.2. Only NOI is disclosed, as FRI has not obtained the permission of the lessee to disclose other information.
41
1. CR = Cap rate determined by the direct reduction approach 2. The cap rate for these properties is calculated using the residual land method.3. The values shown are for FRI’s 66% co-ownership stake. 4. Appraisal value at the end of the 26th period is based on appraisal value determined at the time of acquisition.
Area Property name Acquisition date
Acquisition price
Book value at end of
27th period
27th period(December 31, 2017)
26th period(June 30, 2017) Changes
Major factor in increase/
decreaseAppraisal
value CR1 Appraisal value CR1 Appraisal
valueCR1 CR1 Other
Tokyo metropolitan area
AEON STYLE Shinagawa Seaside Aug. 2004 20,100 15,248 19,100 5.7% 19,100 5.7% 0 0.0%Kamiikedai Tokyu Store Aug. 2004 1,490 1,240 1,860 4.7% 1,820 4.8% +40 -0.1% ○Summit Store Takinogawa Momiji-Bashi Sep. 2006 3,100 2,848 3,700 4.9% 3,630 5.0% +70 -0.1% ○Queen’s Isetan Suginami-Momoi Jul. 2008 3,560 3,366 4,110 4.9% 4,110 4.9% 0 0.0%Mitsui Outlet Park IRUMA Jul. 2008 19,900 16,163 22,600 5.4% 22,600 5.4% 0 0.0%Costco Wholesale Warehouse Iruma (land interest) Jul. 2008 2,600 2,626 2,750 5.4% 2,750 5.4% 0 0.0%Desigual Harajuku Oct. 2008 3,100 2,902 3,400 3.2% 3,400 3.2% 0 0.0%Ito-Yokado Higashi-Yamato Jan. 2009 11,600 9,837 11,100 5.5% 11,100 5.5% 0 0.0%AEON TOWN Tanashi-Shibakubo Feb. 2009 3,100 2,831 3,300 5.6% 3,300 5.6% 0 0.0%GINZA GLASSE Jul. 2010 13,600 12,901 15,100 3.0% 15,100 3.0% 0 0.0%Shimura Shopping Center Jan. 2011 4,430 4,209 5,800 4.5% 5,690 4.6% +110 -0.1% ○Mitsui Shopping Park LaLagarden KASUKABE Feb. 2011 10,000 8,716 11,200 5.3% 11,000 5.4% +200 -0.1% ○Summit Store Yokohama Okano (land interest)2 Feb. 2012 5,700 5,945 6,800 4.6% 6,630 4.7% +170 -0.1% ○Ikebukuro Square Feb. 2013 20,400 19,361 24,700 4.3% 24,400 4.4% +300 -0.1% ○Kohnan Kawasaki-Odasakae Mall (land interest)2 Jan. 2014 7,000 7,069 8,950 4.5% 8,710 4.6% +240 -0.1% ○Mitsui Shopping Park LaLaport SHIN-MISATO Annex Mar. 2014 3,930 3,717 3,980 5.2% 3,980 5.2% 0 0.0%Mitsui Shopping Park LaLaport SHIN-MISATO3 Apr. 2015
Aug. 2016 19,840 19,507 20,200 4.8% 20,300 4.8% -100 0.0% ○Costco Wholesale Warehouse Shin-Misato (land interest) Apr. 2015 3,810 3,854 3,950 4.4% 3,950 4.4% 0 0.0%Super Viva Home Zama and Super Sanwa Zama Higashihara (land interest)4 Jul. 2017 4,320 4,385 4,560 - 4,550 - +10 -
Chubu AEON MALL NAGOYADOME-Mae Mar. 2006 24,800 20,820 25,200 5.2% 25,200 5.2% 0 0.0%Mitsui Shopping Park LaLaport IWATA Jul. 2010 15,200 11,533 15,300 6.1% 15,400 6.1% -100 0.0% ○
Kansai AEON MALL Ibaraki Aug. 2004 18,100 14,306 23,800 5.2% 23,800 5.2% 0 0.0%Belltown Tambaguchi Eki-Mae Store Aug. 2005 2,130 1,872 2,870 5.0% 2,820 5.1% +50 -0.1% ○QANAT Rakuhoku Jul. 2012 8,800 7,953 8,640 4.8% 9,010 4.9% -370 -0.1% ○ ○Shinsaibashi Square Mar. 2015 8,620 8,658 9,500 3.5% 9,010 3.7% +490 -0.2% ○
Chugoku Home Center Kohnan Hiroshima Minami-Machi(land interest) Apr. 2007 1,940 1,754 2,540 5.2% 2,540 5.2% 0 0.0%You Me Town Hiroshima Feb.2008 23,200 20,000 21,200 6.3% 21,600 6.2% -400 +0.1% ○Mitsui Shopping Park ALPARK (East Building) Feb.2013 5,400 4,912 5,500 6.4% 5,520 6.4% -20 0.0% ○
Kyushu/Okinawa
Papillon Plaza Aug. 2004 4,810 4,504 5,440 4.9% 5,330 5.0% +110 -0.1% ○Frespo Tosu (land interest) Nov. 2007 3,178 3,256 3,110 6.5% 3,060 6.6% +50 -0.1% ○Don Quijote Fukuoka Tenjin Dec. 2009 3,700 3,337 4,290 4.2% 4,180 4.3% +110 -0.1% ○VIORO Feb. 2012 10,100 9,675 11,900 3.8% 11,900 3.9% 0 -0.1% ○ ○KOJIMA x BIC CAMERA Naha Store Jan. 2016 1,850 1,922 2,450 5.6% 2,410 5.7% +40 -0.1% ○
Total 293,408 261,243 318,900 317,900 +1,000
Appraisal value
Unrealized gain: ¥57.6 billion(up ¥3.0 billion from 26th period)
(million yen)
42
1. CR = Cap rate determined by the direct reduction approach 2. DR = Discount rate determined by the discounted cash flow approach3. TCR = Terminal cap rate determined by the discounted cash flow approach 4. The cap rate for these properties is calculated using the residual land method.5. The appraisal values are for FRI’s 66% co-ownership stake. 6. Appraisal value at the end of the 26th period is based on appraisal value determined at the time of acquisition.
Area Property name
27th period (December 31, 2017) 26th period (June 30, 2017)
Appraisal value
(million yen)
Direct reduction approach
Discounted cash flow approach
Appraisal value
(million yen)
Direct reduction approach
Discounted cash flow approach
CR1 DR2 TCR3 CR1 DR2 TCR3
Tokyo metropolitan area
AEON STYLE Shinagawa Seaside 19,100 5.7% 5.6% 6.1% 19,100 5.7% 5.6% 6.1%Kamiikedai Tokyu Store 1,860 4.7% 4.4% 4.8% 1,820 4.8% 4.5% 4.9%Summit Store Takinogawa Momiji-Bashi 3,700 4.9% 4.5% 5.0% 3,630 5.0% 4.6% 5.1%Queen’s Isetan Suginami-Momoi 4,110 4.9% 4.6% 5.0% 4,110 4.9% 4.6% 5.0%Mitsui Outlet Park IRUMA 22,600 5.4% 5.2% 5.6% 22,600 5.4% 5.2% 5.6%Costco Wholesale Warehouse Iruma (land interest) 2,750 5.4% 4.8% 5.7% 2,750 5.4% 4.8% 5.7%Desigual Harajuku 3,400 3.2% 3.0% 3.4% 3,400 3.2% 3.0% 3.4%Ito-Yokado Higashi-Yamato 11,100 5.5% 5.3% 5.7% 11,100 5.5% 5.3% 5.7%AEON TOWN Tanashi-Shibakubo 3,300 5.6% 5.3% 5.7% 3,300 5.6% 5.3% 5.7%GINZA GLASSE 15,100 3.0% 2.8% 3.2% 15,100 3.0% 2.8% 3.2%Shimura Shopping Center 5,800 4.5% 4.6% 4.7% 5,690 4.6% 4.7% 4.8%Mitsui Shopping Park LaLagarden KASUKABE 11,200 5.3% 5.1% 5.5% 11,000 5.4% 5.2% 5.6%Summit Store Yokohama Okano (land interest)4 6,800 4.6% 4.4% - 6,630 4.7% 4.5% -Ikebukuro Square 24,700 4.3% 4.1% 4.5% 24,400 4.4% 4.2% 4.6%Kohnan Kawasaki-Odasakae Mall (land interest)4 8,950 4.5% 4.3% - 8,710 4.6% 4.4% -Mitsui Shopping Park LaLaport SHIN-MISATO Annex 3,980 5.2% 5.0% 5.4% 3,980 5.2% 5.0% 5.4%Mitsui Shopping Park LaLaport SHIN-MISATO5 20,200 4.8% 4.5% 4.9% 20,300 4.8% 4.5% 4.9%Costco Wholesale Warehouse Shin-Misato (land interest) 3,950 4.4% 4.5% 4.3% 3,950 4.4% 4.5% 4.3%Super Viva Home Zama and Super Sanwa Zama Higashihara (land interest)6 4,560 - 4.0% - 4,550 - 4.0% -
Chubu AEON MALL NAGOYADOME-Mae 25,200 5.2% 4.9% 5.3% 25,200 5.2% 4.9% 5.3%Mitsui Shopping Park LaLaport IWATA 15,300 6.1% 5.9% 6.3% 15,400 6.1% 5.9% 6.3%
Kansai AEON MALL Ibaraki 23,800 5.2% 5.0% 5.4% 23,800 5.2% 5.0% 5.4%Belltown Tambaguchi Eki-Mae Store 2,870 5.0% 4.6% 5.0% 2,820 5.1% 4.7% 5.1%QANAT Rakuhoku 8,640 4.8% 4.5% 4.9% 9,010 4.9% 4.6% 5.0%Shinsaibashi Square 9,500 3.5% 3.3% 3.7% 9,010 3.7% 3.5% 3.9%
Chugoku Home Center Kohnan Hiroshima Minami-Machi (land interest) 2,540 5.2% 4.8% - 2,540 5.2% 4.8% -
You Me Town Hiroshima 21,200 6.3% 6.0% 6.4% 21,600 6.2% 5.9% 6.3%Mitsui Shopping Park ALPARK (East Building) 5,500 6.4% 6.2% 6.7% 5,520 6.4% 6.2% 6.7%
Kyushu/Okinawa
Papillon Plaza 5,440 4.9% 4.6% 5.0% 5,330 5.0% 4.7% 5.1%Frespo Tosu (land interest) 3,110 6.5% 7.2% - 3,060 6.6% 7.3% -Don Quijote Fukuoka Tenjin 4,290 4.2% 4.0% 4.4% 4,180 4.3% 4.1% 4.5%VIORO 11,900 3.8% 3.9% 4.0% 11,900 3.9% 4.0% 4.1%KOJIMA x BIC CAMERA Naha Store 2,450 5.6% 5.4% 5.8% 2,410 5.7% 5.5% 5.9%
Appraisal value (supplement)
43
Total amount
(million yen)Lender No. Amount
(million yen) Interest rate Drawdown date Maturity date Loan period
(approximate) Remarks
Long-term borrowings
15,500 Sumitomo Mitsui Banking Corporation
1 2,000 1.27750% 6/20/2011 6/20/2018 7.0 years
Unsecured/Unguaranteed
2 3,000 1.16875% 2/20/2012 2/20/2020 8.0 years3 1,000 1.01125% 8/20/2012 8/20/2020 8.0 years4 3,000 1.15625% 2/1/2013 2/1/2023 10.0 years5 1,500 0.60848% 5/19/2014 11/19/2020 6.5 years6 2,000 0.27500% 7/2/2015 7/2/2019 4.0 years7 2,000 0.16830% 6/20/2017 6/21/2021 4.0 years8 1,000 0.13830% 8/29/2017 8/30/2021 4.0 years
11,500 Mitsubishi UFJ Trust and Banking Corporation
9 2,000 1.27750% 6/20/2011 6/20/2018 7.0 years10 2,500 0.82000% 2/1/2013 2/1/2021 8.0 years11 2,000 0.68500% 2/19/2015 2/19/2025 10.0 years12 1,500 0.54400% 3/2/2015 3/4/2024 9.0 years13 1,500 0.62000% 3/2/2015 3/3/2025 10.0 years14 1,000 Note 3 0.88600% 7/2/2015 7/2/2027 12.0 years15 1,000 0.46130% 3/9/2016 3/9/2028 12.0 years
10,500 Development Bank of Japan Inc. 16 2,000 1.20875% 8/19/2013 8/21/2023 10.0 years17 1,500 1.17000% 3/17/2014 5/19/2025 11.2 years18 2,000 0.35880% 3/9/2016 3/9/2027 11.0 years 19 1,000 0.37190% 4/19/2016 7/20/2027 11.3 years 20 4,000 0.33415% 8/9/2016 2/9/2028 11.5 years
5,800 Mizuho Bank, Ltd. 21 1,500 1.30750% 5/19/2011 5/21/2018 7.0 years22 1,500 0.90500% 3/15/2013 3/15/2022 9.0 years23 1,300 Note 3 0.59750% 7/22/2014 7/19/2022 8.0 years24 1,500 0.21076% 7/19/2017 1/19/2022 4.5 years
Total amount
(million yen)Lender No. Amount
(million yen) Interest rate Drawdown date Maturity date Loan period
(approximate) Remarks
Short-termborrowings
4,500 Mizuho Bank, Ltd. 1 3,500 0.08545% 1/19/2018 2/19/2018 1 monthUnsecured/
Unguaranteed2 1,000 0.06077% 2/1/2018 2/19/2018 2 weeks1,000 The 77 Bank, Ltd. 3 1,000 0.08545% 1/19/2018 2/19/2018 1 month
Total short-term borrowings 5,500
Short-term borrowings
Long-term borrowings
(as of February 15, 2018)
(as of February 15, 2018)
1. Repayment method is lump-sum repayment for all borrowings. 2. All interest rates on borrowings (except for those covered by note 3) are fixed rates.3. These borrowings have been swapped into fixed rates to avoid the risk of interest rate fluctuations. The rates indicated are those at the time the rate swap contracts were formed.
Borrowings and bonds
44
Total amount
(million yen)Lender No. Amount
(million yen) Interest rate Drawdown date Maturity date Loan period
(approximate) Remarks
Long-term borrowings
5,700 Sumitomo Mitsui Trust Bank, Limited
25 2,200 1.04125% 12/16/2011 12/14/2018 7.0 years
Unsecured/Unguaranteed
26 1,500 0.27500% 7/2/2015 7/2/2019 4.0 years27 2,000 0.30874% 11/30/2015 11/30/2021 6.0 years
4,400 Mizuho Trust & Banking Co., Ltd. 28 2,500 0.69000% 2/1/2013 2/3/2020 7.0 years29 1,900 0.15380% 3/9/2016 3/11/2024 8.0 years
4,000 The Norinchukin Bank 30 2,000 0.77250% 7/18/2013 7/18/2019 6.0 years31 1,000 Note 3 0.33300% 1/7/2015 1/23/2023 8.0 years32 1,000 0.21750% 1/23/2018 1/23/2023 5.0 years
4,000 THE BANK OF FUKUOKA, LTD. 33 1,000 0.33500% 11/21/2016 11/24/2026 10.0 years34 2,000 0.42500% 2/24/2017 2/24/2027 10.0 years35 1,000 0.35630% 2/1/2018 2/19/2026 8.1 years
2,500 The Bank of Tokyo-Mitsubishi UFJ, Ltd.
36 1,000 1.28625% 8/19/2011 8/19/2019 8.0 years37 1,500 0.99000% 2/24/2012 2/22/2019 7.0 years
2,000 The Daishi Bank, Ltd. 38 1,000 Note 3 0.04805% 2/10/2016 2/10/2023 7.0 years 39 1,000 0.29785% 8/1/2017 2/19/2025 7.6 years
2,000 The Iyo Bank, Ltd. 40 1,000 Note 3 0.61150% 4/1/2015 5/14/2025 10.1 years41 1,000 0.09000% 11/21/2016 11/22/2021 5.0 years
2,000 The Yamaguchi Bank, Ltd. 42 1,000 0.81125% 8/18/2014 8/19/2024 10.0 years43 1,000 0.56000% 6/19/2017 6/19/2029 12.0years
1,000 Resona Bank, Limited. 44 1,000 Note 3 0.46490% 3/2/2015 3/4/2024 9.0 years1,000 The Hiroshima Bank, Ltd. 45 1,000 Note 3 0.40250% 11/25/2014 11/25/2021 7.0 years1,000 The Gunma Bank, Ltd. 46 1,000 Note 3 0.27100% 12/16/2014 12/16/2020 6.0 years1,000 THE HACHIJUNI BANK, LTD. 47 1,000 Note 3 0.25190% 11/19/2015 5/19/2022 6.5 years1,000 The Musashino Bank, Ltd. 48 1,000 0.45333% 3/25/2014 5/27/2019 5.2 years1,000 The 77 Bank, Ltd. 49 1,000 0.41130% 12/22/2016 12/22/2026 10.0 years
Total long-term borrowings 75,900
Investment corporation bondsTotal
amount (million yen)
Issue No. Amount (million yen) Interest rate Issue date Maturity date Period Remarks
Investment corporation
bonds3,000 2nd Investment corporation bonds 1 3,000 0.708% 11/25/2016 11/25/2031 15.0 years Unsecured/
Unguaranteed
Total Investment corporation bonds 3,000
Borrowings and bonds
1. Repayment method is lump-sum repayment for all borrowings. 2. All interest rates on borrowings (except for those covered by note 3) are fixed rates.3. These borrowings have been swapped into fixed rates to avoid the risk of interest rate fluctuations. The rates indicated are those at the time the rate swap contracts were formed.
(as of February 15, 2018)
(as of February 15, 2018)
45
FRI maintains top-level ratings among J-REITs, making its investment units eligible for purchase by the Bank of Japan.
Ratings and indices
Rating Firm Category Rating Outlook
JCR Long-term issuer AA Stable
R&I Issuer AA- Stable
S&P
Long-term A+ Stable
Short-term A-1 Stable
Inclusion in global REIT indicesRatings
Indices
FTSE EPRA/NAREIT Global Real Estate Index
Dow Jones Global Select REIT Index
S&P Global REIT Index/S&P Developed REIT Index
GPR 250 Index/GPR 250 REIT Index
(as of December 31, 2017)
(Logo presented above is based on the websites of the aforementioned agencies)
46
508 1,011 516 1,003 516 1,003 1,637 763 276 763 460
96
92
83
32
114
122
33
87
125
171
158
411
657
1,636
1,161
1,608
712 879 1,072
487
1,306
1,715
1,138 1,450
0
500
1,000
1,500
2,000
第18期 第19期 第20期 第21期 第22期 第23期 第24期 第25期 第26期 第27期 第28期
(As of December 31, 2017)
Average remaining years until full repayment of leasehold andsecurity deposits: 8.9 years
Over 20 years4.0%
(百万円)
Leasehold and security deposits and depreciation
Repayment ends at You Me Town
Hiroshima
Repayment starts at You Me Town
Hiroshima Repayment ends at AEON STYLE Shinagawa
Repayment ends at NAGOYADOME-Mae
Remaining period until full repayment
Leasehold and security deposit features
Schedule of security deposit repayment
Since FRI contracts long-term leases, it can use leasehold and security deposits to procure significant long-term funding.
Since FRI holds many security deposits at zero interest, these deposits provide a source of low-cost funding.
Utilizing depreciation
Utilizing capital equivalent to each period’s depreciation enables aggressive strategic investment in addition to the repayment of security deposits.
18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th(forecast)
(million yen)
Over 10 years: Approx. 40%
Over 5 years: Approx. 60%
■Property acquisition, etc. ■Large-scale
renovations ■Ordinary capital expenditure ■Repayment of security
deposits
Within 5 years
36.2%
Over 5 years, up to 10 years
24.4%
Over 10 years, up to 15 years
14.9%
Over 15 years, up to 20 years
20.6%
0億円
10億円
20億円
2018年 2020年 2022年 2024年 2026年 2028年2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
2.0(billion yen)
1.0
0
2017201620152014 20182013
47
Approx.42%
50.0%
40.0%
¥9,000
第1期
(04/12期)
第2期
(05/6期)
第3期
(05/12期)
第4期
(06/6期)
第5期
(06/12期)
第6期
(07/6期)
第7期
(07/12期)
第8期
(08/6期)
第9期
(08/12期)
第10期
(09/6期)
第11期
(09/12期)
第12期
(10/6期)
第13期
(10/12期)
第14期
(11/6期)
第15期
(11/12期)
第16期
(12/6期)
第17期
(12/12期)
第18期
(13/6期)
第19期
(13/12期)
第20期
(14/6期)
第21期
(14/12期)
第22期
(15/6期)
第23期
(15/12期)
第24期
(16/6期)
第25期
(16/12期)
第26期
(17/6期)
第27期
(17/12期)
第28期(予想)
(18/6期)
**
4,771 5,622 6,045
7,218 8,648
8,846 8,922 8,980 9,205 9,274 9,368 9,294 9,097 9,239 9,299 9,991
9,191 9,173 9,405 10,211 9,707 9,360 9,695 9,694 9,903 10,022 10,146 10,080
9.3% 8.3%14.3%
34.0% 35.2% 35.9% 37.5%41.0% 41.0%
45.5% 46.2% 45.7%43.6%
46.8% 46.3%49.6%
42.5% 41.0%37.6%
39.2% 38.0%41.7% 41.2% 39.1%
42.3% 41.6% 42.2%
Growth cycle and property acquisitions
公募増資
一口当たり
分配金(
円)
資産規模(
取得価格ベース)
LTV
Public offerings
Distribution
per unit (yen)Asset size
(acquisition price basis)
LTV
Sponsor
July 2010 July 2012July 2008March 2008Third-party allotment
March 2013
Sound, careful control of LTV
Track record of stable distributions
Seeking to grow FRI’s asset size tomaintain and improve the stability of theearnings base
スポンサーからの取得
スポンサー外からの取得
資産規模(億円)
Property sales Property sale
Asset size (billion yen)
Acquisitions from the sponsor
Acquisitions not from the sponsor
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28thDec.‘04 Jun.’05 Dec.‘05 Jun.’06 Dec.’06 Jun.’07 Dec.’07 Jun.’08 Dec.‘08 Jun.’09 Dec.’09 Jun.’10 Dec.’10 Jun.’11 Dec.’11 Jun.’12 Dec.’12 Jun.‘13 Dec.’13 Jun. ’14 Dec.‘14 Jun.‘15 Dec.’15 Jun.’16 Dec. ‘16 Jun.’17 Dec. ’17 Jun.’18
Japan Tobacco March 2008 onward: Mitsui Fudosan
*FRI implemented a two-for-one split of its investment units effective January 1, 2014. Distributions before the split have been divided by two and truncated to the nearest yen.** Distribution per unit (DPU), LTV and asset size forecasts for the 28th period are given as the figures announced in “Summary of Financial Results for the 27th Fiscal Period,” published February 15, 2018.
2,7391,231 1,596 1,743 1,780 2,068 2,212 2,458 2,7162,3701,780 2,212 2,592 2,678 2,659 2,831648 648 669 917 967 999948 2,831 2,9342,890 2,890 2,934
48
26,060 26,060 29,160
57,960 67,960 76,760 102,560 106,490
123,660 138,760
3,100
28,800
10,000 8,800
25,800
3,930 17,170
15,100
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2008年6/12期 2009年6/12期 2010年6/12期 2011年6/12期 2012年6/12期 2013年6/12期 2014年6/12期 2015年6/12期 2016年6/12期 2017年6/12期
Assets acquired from the sponsor (Mitsui Fudosan)
Properties acquired from Mitsui Fudosan
Average annual acquisition price:¥13,876 million
Non-sponsor17.7%
Japan Tobacco35.1%
Mitsui Fudosan,etc. 47.3%
Acquisition resources
Steady track record of property acquisitions via the sponsor’s robust pipeline
Mitsui Shopping Park LaLaport SHIN-MISATO
Annex¥3.9 billion
Queen’s Isetan Suginami-Momoi
¥3.5 billion
AEON TOWN Tanashi-Shibakubo
¥3.1 billion
GINZA GLASSE¥13.6 billion
Mitsui ShoppingPark LaLagarden
KASUKABE¥10.0 billion
QANAT Rakuhoku¥8.8 billion
Ikebukuro Square¥20.4 billion
Shinsaibashi Square¥8.6 billion
Mitsui Shopping Park LaLaport
SHIN-MISATO (50%)¥15.1 billion
Mitsui Outlet Park IRUMA
¥19.9 billion
Mitsui Shopping Park LaLaport IWATA
¥15.2 billion
Mitsui Shopping Park ALPARK (East Building)
¥5.4 billion
Mitsui Shopping Park LaLaportSHIN-MISATO (16%)
¥4.7 billion
Costco Wholesale Warehouse
Iruma (land interest)¥2.6 billion
Costco Wholesale WarehouseShinmisato (land interest)
¥3.8 billion
(million yen)
8th/9th 10th/11th 12th/13th 14th/15th 16th/17th 18th/19th 20th/21st 22nd/23rd 24th/25th 26th/27th
Total acquisition
price:¥293.4 billion
10 properties¥102.8 bn
9 properties¥51.8 bn
14 proper-
ties¥138.7
bn
(As of Feb. 15, 2018Cumulative assets acquired from Mitsui Fudosan, etc.
49
Mitsui Fudosan’s retail facility development
Total:Approx.
¥873.5 billion
Retail facilities inoperation 14%
Planned & underdevelopment 45%
Office buildings in operation 20%
Rental housing in operation 6%
Logisticsfacilities inoperation 8%
As of March 31, 2017 Opening year Project name Location
2014
LaLa terrace MUSASHIKOSUGI Kawasaki City, Kanagawa
MITSUI OUTLET PARK SAPPORO KITA-HIROSHIMA (2nd stage) Kitahiroshima City, Hokkaido
MITSUI OUTLET PARK KISARAZU (2nd stage) Kisarazu City, Chiba
LaLaport KASHIWANOHA (North Building) Kashiwa City, Chiba
Akarenga TERRACE Sapporo City, Hokkaido
IIDABASHI SAKURA TERRACE Chiyoda City, Tokyo
LaLaport IZUMI Izumi City, Osaka
Shin-Kawasaki Square Kawasaki City Kanagawa
2015
LaLaport FUJIMI Fujimi City, Saitama
MITSUI OUTLET PARK KLIA SEPANG (1st stage) Selangor, Malaysia
MITSUI OUTLET PARK HOKURIKU OYABE Oyabe City, Toyama
MITSUI OUTLET PARK MAKUHARI (3rd stage) Chiba City, Chiba
LaLaport EBINA Ebina City, Kanagawa
LaLaport EXPOCITY Suita City, Osaka
Mitsui Outlet Park LINKOU New Taipei, Taiwan
2016 LaLaport SHONAN HIRATSUKA Hiratsuka City, Kanagawa
2017
SAKAE GLOBE Nagoya City, Aichi
KICHIJOJI SQUARE Musashino City, Tokyo
MITSUI OUTLET PARK JAZZ DREAM NAGASHIMA (5th stage) Kuwana City, Mie
MITSUI OUTLET PARK KLIA SEPANG (2nd stage) Selangor, Malaysia
2018
LaLaport NAGOYA KOMEI Nagoya City, Aichi
MITSUI OUTLET PARK KISARAZU (3rd stage) Kisarazu City, Chiba
Shinsaibashi-suji 1-chome Project Osaka City, Osaka
MITSUI OUTLET PARK TAICHUNG PORT Taichung, Taiwan
2019 LaLaport NUMAZU Numazu City, Shizuoka
2021MITSUI OUTLET PARK KLIA SEPANG (3rd stage) Selangor, MalaysiaLaLaport Kuala Lumpur Kuala Lumpur, Malaysia
TBDRetail Facility Development Project in Togocho, Aichi Aichi-gun, Aichi
Miyashita Park Project Shibuya City, Tokyo
Overseas rental assets in operation8%
Main retail facility projects under developmentBreakdown of Mitsui Fudosan’s inventory of property for sale to investors
REIT sponsored by the Mitsui Fudosan Group, etc.
Property sales to various investors
Institutional investors, corporations, etc.
Buyers commission property management
Mitsui Fudosan’s model for joint value creation with investors
Prepared from data in Mitsui Fudosan’s “Investor Presentation February 2018”
Prepared from data in Mitsui Fudosan’s “Investor Presentation February 2018”
50
Mitsui Fudosan’s retail facility operation
Mitsui Fudosan’s retail facility operation
MITSUI OUTLET PARK SAPPORO KITAHIROSHIMA
LaLaport SHONAN HIRATSUKA LaLaport FUJIMI
COREDO Muromachi 1Tokyo Midtown
Source: Mitsui Fudosan. As of October 1, 2017. Includes properties operated and managed on a consignment basis as well as three overseas properties.
Number of facilities 114
Total floor space Approx. 5,200,000 m2
Leased floor space Approx. 2,900,000 m2
Tenant stores Approx. 7,700
Tenant companies Approx. 2,300
Mitsui Fudosan owns and operates retail facilities across Japan, mainly in the Tokyo metropolitan and Kansai areas
(million yen)
Rental revenue of Mitsui Fudosan’s retail facilities (non-consolidated)
Source: Fact books for the years ended March 31, 2002-2017, Mitsui Fudosan
34,657 36,935 37,601 45,947 51,716 62,091
87,393 103,191
118,823 123,114
129,235 148,025 157,716
169,894
201,371 215,221
0
50,000
100,000
150,000
200,000
250,000
2002年3月期
2003年3月期
2004年3月期
2005年3月期
2006年3月期
2007年3月期
2008年3月期
2009年3月期
2010年3月期
2011年3月期
2012年3月期
2013年3月期
2014年3月期
2015年3月期
2016年3月期
2017年3月期
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
● Regional SC ● Mitsui Outlet Park● Urban retail facilities ● Other Hokkaido
Tohoku
Tokyo metropolitanareaChubu
Kansai
Chugoku
Kyushu
51
Utilizing the support of the sponsor
Frontier REIT SC Management Co., Ltd.
Asset custodianshipPreventive maintenance of buildings/facilities, approval of construction by tenants, emergency response, etc.
Operation and managementManagement company supervision, reporting on operations/management
Accounting support
Retail facility operation/management
Specialized in the operation and management of properties owned by FRI
Support for external growth• Rich property pipeline
• Provides brokerage and information regarding properties from third parties
Support for internal growth• Operation/management using the Mitsui Fudosan Group’s expertise
• Provides information on the retail market and tenant leasing
Asset Management Company
Comprehensive developer
52
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2004/08 2005/08 2006/08 2007/08 2008/08 2009/08 2010/08 2011/08 2012/08 2013/08 2014/08 2015/08 2016/08 2017/08
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
220%
240%
2004/08 2005/08 2006/08 2007/08 2008/08 2009/08 2010/08 2011/08 2012/08 2013/08 2014/08 2015/08 2016/08 2017/08
Average trading volumePrice at end of 27th period
876438,000
(27th period)(Dec. 29, 2017)
Investment unit price (Aug. 9, 2004 – Dec. 31, 2017)
FRI unit price(left axis)
Volume (right axis)
(yen)Source: QUICK
(units)
*FRI投資口価格はIPO価格を100%とする。*東証REIT指数は2004年8月9日の終値を100%とする。
Price comparison (Aug. 9, 2004 – Dec. 31, 2017)Source: QUICK
FRI unit price (left axis) Distribution yield (right axis)TSE REIT Index (left axis)
*For FRI unit price, the price upon IPO has been set at 100%
*For TSE REIT Index, the closing value of August 9,2004 has been set at 100%
* FRI implemented a two-for-one split of its investment units effective January 1, 2014. Accordingly, unit prices before December 25, 2013, have been divided by two.
Investment unit price
53
25.7%
25.5%
25.5%
26.5%
26.8%
25.5%
28.1%
26.4%
28.1%
26.3%
40.8%
45.8%
46.8%
44.3%
47.2%
46.0%
43.2%
45.0%
44.1%
42.8%
8.4%
7.3%
6.7%
7.0%
6.5%
6.9%
6.6%
6.5%
6.7%
7.4%
9.4%
8.6%
8.8%
8.8%
8.6%
8.7%
8.6%
8.5%
8.2%
8.4%
15.8%
12.7%
12.2%
13.5%
10.8%
12.9%
13.5%
13.5%
12.9%
15.1%
0% 20% 40% 60% 80% 100%
第18期
(13/6月)
第19期
(13/12月)
第20期
(14/6月)
第21期
(14/12月)
第22期
(15/6月)
第23期
(15/12期)
第24期
(16/6期)
第25期
(16/12期)
第26期
(17/6期)
第27期
(17/12期)
金融機関 投信等 個人・その他 その他の国内法人 外国法人等
第26期(17/6期)
第25期(16/12期)
第24期(16/6期)
第23期(15/12月)
第22期(15/6月)
第21期(14/12月)
第20期(14/6月)
第19期(13/12月)
第18期(13/6月)
第27期(17/12月)
Unitholders
Name Units held Proportion
Japan Trustee Services Bank, Ltd. (Trust Account) 105,289 21.2 %
The Master Trust Bank of Japan, Ltd. (Trust Account) 64,635 13.0 %
Mitsui Fudosan Co., Ltd. 29,200 5.9 %
The Nomura Trust and Banking Co., Ltd. (Investment Trust Account) 21,301 4.3 %Trust & Custody Services Bank, Ltd. (Securities Investment Trust Account)
16,708 3.4 %
The Yamanashi Chuo Bank, Ltd. 9,543 1.9 %State Street Bank-West Pension Fund Clients-Exempt 505233 7,656 1.5 %
The Chugoku Bank, LTD. 6,275 1.3 %
State Street Bank and Trust Company 505223 6,275 1.3 %DFA INTERNATIONAL REAL ESTATE SECURITIES PORTFOLIO 6,138 1.2 %
Total 273,020 55.0%
* All as of December 31, 2017
Financial institutions*
Individuals, other
Other domestic
corporations
Overseas corporations and others
Total
27th period(Dec. 2017) 182 8,259 200 216 8,857
26th period(June 2017) 183 7,713 190 206 8,292
Change -1 +546 +10 +10 +565
Unitholders by type
Principal unitholders* (top 10)
27th 12/17
26th 6/17
25th 12/16
24th 6/16
23rd 12/15
22nd 6/15
21st 12/14
20th 6/14
19th 12/13
18th 6/13
*Includes mutual funds, etc.
■Financial institutions ■Mutual funds, etc. ■Individuals, other■Other domestic corporations ■Overseas corporations and others
Units held by unitholder type
Asset Management Company